Financial planning in SA?
Results released from the Finscope 2009 report (www.finscope.co.za) are startling and reveal quite a bit about the country in which we live:
- 69% of adults are from households that have at least 1 person who is unemployed and looking for work
- FinScope SA 2009 findings indicate a decline in the percentage of adults with formal as well as informal employment (28% of adults get money from formal employment whilst 16% get an income from informal work)
- In terms of sources of money, South African adults illustrate a significant reliance on friends or family – 28% of adults get money from friends and family as a source of income
- 25% of adults get an income from Government social grants
- Generally SA adults appear to be increasingly concerned about day-to-day living and expenses, increasingly more risk averse and not able to save
This is not that surprising in a country where unemployment is close to 25%, the average life expectancy is just under 50 years and where 50% live below the poverty line.
It might seem unreasonable to talk about financial planning against this background but it is my opinion that this is all the more reason to do some financial planning. Where a resource is scarce, it needs to be used wisely…